If the tenant's business fails, the property might sit vacant until a new tenant is found, disrupting the income flow.Property Specificity: Some NNN properties may be built to suit a particular tenant's needs.

However, the complications you're facing are not uncommon in real estate transactions, particularly when dealing with seller financing and properties that don't meet traditional lending criteria "DSCR."

If you end up rejecting this potential tenant, it will have to be on grounds that they do not meet all of your criteria or you have come across a stronger candidate.  

Thoughts: People who do not have furniture are far more transient.........You may also want to revisit your screening criteria.

Buyers must adhere to specific guidelines and deadlines, and any errors or omissions in the bidding process can result in disqualification.Potential for Hidden Costs: While HUD homes may be priced attractively, buyers should be aware of potential hidden costs associated with repairs, maintenance, and renovations.

There’s no universal standard since it relies on two main variables–your investing objectives and current market conditions.Some key factors influencing a good cap rate include:/ Property location/ Building condition/ Asset type (class A, B, C)/ Overall real estate market dynamicsTaking these into account helps set realistic cap rate expectations, but historically, rates between 4-10% are often seen as solid.Of course, a “good” cap rate for you might fall outside that range based on your investing goals and the specific property/market, so don’t get hung up on chasing a specific cap rate number.What is a good cap rate for your market?

Great choice focusing on mortgage note investing (best way to get into real estate in my opinion).Would love to hear your thoughts on the strategy you'll pursue to get into the secondary mortgage market.What type of loans (1st, 2nd, performing/non-performing, state-specific, etc)? 

I am building my TEAM and currently looking in specific markets in the Los Angeles County areas for 4+ UNIT properties.

You just tighten your renting standards and follow the laws.Know your specific/local laws well. 

Once I have your criteria, I can put you on auto e-mails and we can touch base weekly or as often as we find things that may work.